|
FAQ
Rates
Real Estate
Helpful Information |
Real Estate
ORLANDO, Fla. – May 13, 2008 – Florida
Realtors reported positive signs in their local housing markets
during first quarter 2008, noting a slower rate of expansion for
inventory levels and an increase in pending home sales (based on
contracts signed but not closed) in some areas. In another positive
note: Sales of existing condominiums improved from fourth quarter
2007 to first quarter 2008, according to the latest housing
statistics from the Florida Association of Realtors (FAR). A total
of 8,581 existing condos sold statewide in 1Q 2008, an 8.3 percent
increase over 4Q 2007 when 7,923 units sold.
“If we look at what is happening
month-over-month for 2008, it appears that the bottom [of the
housing slowdown] may be here,” says 2008 FAR President Chuck
Bonfiglio. “We are now seeing more activity, more sales and even
prices starting to rise in some markets. So I believe that there are
some really good signs in many areas of our state.”
Looking at the year-to-year quarterly
comparison, a total of 25,443 single-family existing homes changed
hands during the three-month period, a decrease of 26 percent
compared to 34,298 homes sold during the same time a year earlier,
according to FAR records. The statewide existing-home median sales
price was $202,300 in the first quarter; a year ago, it was $238,900
for a decrease of 15 percent. In 2003, the first-quarter statewide
median sales price was $145,600, which reflects an increase of 38.9
percent over the five-year period. The median is a typical market
price where half the homes sold for more, half for less.
To gain insight into current trends in
Florida’s real estate industry, the University of Florida’s
Bergstrom Center for Real Estate Studies conducts a quarterly survey
of industry executives, market research economists, real estate
scholars and other experts. The first quarter 2008 survey, released
in March, found the outlook for Florida remains stable because of
the state’s fundamentals of good climate and in-migration. “It
sounds like an old song re-sung, but our respondents are still
keeping the faith in the real estate market,” said Wayne Archer,
director of UF’s Bergstrom Center for Real Estate Studies.
In a year-to-year quarterly comparison for
condo sales, 8,581 units sold statewide for the quarter compared to
11,116 in 1Q 2007 for a 23 percent decrease. The statewide
existing-condo median sales price was $178,400 for the three-month
period; in 1Q 2007, it was $216,100 for a 17 percent decrease.
Continuing low mortgage rates remain
another positive influence on the housing sector. According to
Freddie Mac, the national commitment rate for a 30-year conventional
fixed-rate mortgage averaged 5.88 percent in first quarter 2008; one
year earlier, it averaged 6.22 percent.
The latest industry outlook from the
National Association of Realtors (NAR) predicts that home sales
activity will remain flat for the next couple months before
improving over the summer. The extent of an expected recovery hinges
on better access to affordable loans, according to NAR Chief
Economist Lawrence Yun.
“Things are beginning to improve, but the
availability of affordable mortgages is uneven around the country
and sometimes within metropolitan areas,” Yun said. “As anticipated,
we continue to look for a soft first half of the year, for both
housing and the economy, before notable improvements in the second
half. Some time is needed for FHA and new conforming jumbo loans to
become widely available.”
When speaking to a group of Realtors from
the Tampa Bay area last week, Yun predicted that home sales and
prices should stabilize in the second half of the year, then begin
to rise in 2009. He cited mortgage rates near historic lows, strong
business spending and solid corporate profits as good economic
signs. NAR’s chief economist also spoke to a group of Realtors from
the Manatee County area last week, reporting that the housing market
is on the verge of recovery.
© 2008 FLORIDA ASSOCIATION OF REALTORS
|
